The energy crisis caused by shelling has led to a decline in Ukraine's economy
This was reported by Reuters, citing business representatives, government officials and economists.
According to the agency, prolonged power outages are forcing companies to cut production, increase costs and change work schedules. Power cuts have affected the operations of metallurgical, mining, cement and food companies.
Serhiy Pylypenko, CEO of the Kovalskaya Group, said that emergency power cuts have been going on for more than two months without a predictable schedule. According to him, unstable power supply can reduce production volumes by up to 50%.
According to economists' estimates, in January and February, demand for electricity exceeded supply by approximately 30%. During peak periods, Ukraine could produce about 12.3 gigawatts of electricity, while demand was 16.4 gigawatts, so it was forced to import electricity.
The National Bank of Ukraine has lowered its economic growth forecast for this year to 1.8%. At the same time, investment company Dragon Capital expects growth of 1%, and ICU expects 0.8%.
According to the European Business Association, about 80% of companies have been affected by power outages. Half of the enterprises have reduced production, and 61% have reported an increase in costs.
Prime Minister Yulia Svyrydenko said that in January alone, the energy crisis led to losses to the state budget of around UAH 12 billion in tax and customs revenues.
